(b) The information below relates to a leasing arrangement between Simmonds Leasing Company and Telsan Company, a lessee. Inception date January 1, 2020 Lease term 6 years Annual lease payment due at the beginning of each year, beginning with January 1, 2020 $150,000 Fair value of asset at January 1, 2020 $760,000 7 years Economic life of leased equipment Residual value of equipment at end of lease term, guaranteed by the lessee $65,500 Lessor's implicit rate 10% Lessee's incremental borrowing rate 12% January 1, 2020 The asset will revert to the lessor at the end of the lease term. The lessee has guaranteed the lessor a residual value of $65,500. The lessee uses the straight-line depreciation method for all equipment. istructions (1) What is the lease liability for Telsan Company? (4 marks) (ii) Record the lease on Telsan Company's books at the date of inception. (4 marks) (11) Record the first year's depreciation on Telsan Company's books. (3 marks) (iv)Record interest expense and lease liability for Telsan Company for the year ending December 31, 2020. (2 marks) (v) Discuss the nature of this lease to Simmonds Leasing Company